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F I S C A L I M P A C T R E P O R T

SPONSOR Rodella

ORIGINAL DATE

LAST UPDATED

1/26/2007

2/9/2007 HB 244/a HTPWC

SHORT TITLE Cumbres and Toltec Railroad License Plates

SB

ANALYST Schuss

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

FY09

$0.1

Non-Recurring Motor Vehicle

Division

$0.1 Recurring Motor Vehicle

Suspense Fund

$0.1

$0.1 Recurring

Cumbres and

Toltec Scenic

Railroad

Commission

SOURCES OF INFORMATION

LFC Files

Responses Received From

Tax and Revenue Department (TRD)

Cumbres and Toltec (CT)

SUMMARY

Synopsis of Amendment

This amendment makes the effective date for HB 244 July 1, 2008.

Synopsis of Original Bill

House Bill 244 would authorize a new standardized special registration plate with an artwork

logo featuring the Cumbres and Toltec scenic railroad. Vehicle owners requesting the plate

would be charged an added fee of $40 per registration in addition to all other fees. Revenue

from the fee would be distributed as follows:

•

In the first year the plates are issued, $15 to the Motor Vehicle Division (MVD) to cover

costs of producing the plates;

House Bill 244/a HTPWC – Page

2

•

After the first year, $15 to the Motor Vehicle Suspense Fund for distribution in

accordance with Section 66-6-23 NMSA 1978;

•

$25 to the Cumbres and Toltec Scenic Railroad Commission.

The bill also amends Section 66-6-23 to provide for distribution to the Cumbres and Toltec

Scenic Railroad Commission of $25.00 collected for the special registration plate.

FISCAL IMPLICATIONS

$15 per plate is appropriated to MVD in the first year the plates are issued. After the first year

that $15 is credited to the Motor Vehicle Suspense Fund for distribution in accordance with

Section 66-6-23 NMSA 1978.

The Tax and Revenue Department cannot precisely estimate the number of Cumbres and Toltec

special plates that may be requested. Approximately 25,000 special plates are currently issued

under 22 different kinds. The most common are the veterans of various armed services (9,269

total) and collegiate plates (8,957 total), but several of the special plates have been issued in

much smaller quantities.

There will be no impact to the General Fund.

ADMINISTRATIVE IMPLICATIONS

The Tax and Revenue Department states that since the implementation of several special

registration plates over the past few years, the revenue accounting system of the Motor Vehicle

Division has run out of revenue codes to implement additional special registration plates. All

new special registration plates are assigned a revenue code and financial programming so the

plate can be programmed into the system and the associated funds distributed appropriately.

Without any revenue codes available, no additional special registration plates can be

implemented into the existing system. In order to accommodate new special registration plates, a

re-write of the revenue accounting system will need to occur. Without the necessary funding to

accomplish a re-write, the department recommends a July 1, 2008, effective date for this and any

other special registration plate proposals in order to complete the necessary system changes.

TECHNICAL ISSUES

According to the Tax and Revenue Department the Cumbres and Toltec scenic railroad

commission is composed of four members. Two of the members serve for New Mexico and two

members serve for Colorado (§ 16-5-3). The New Mexico share of the expenses of the

commission and reimbursement of the New Mexico members may be paid from funds

appropriated by the legislature (§ 16-5-5). Under the bill, the $25 fee per plate would be

distributed to the scenic railroad commission (consisting of both NM and Colorado members).

Thus it is possible that the $25 per plate fee could be used to fund expenses of the entire

commission (rather than just New Mexico’s share of the expenses of the commission).

Therefore, at page 2, lines 23-25, the bill should specify that the $25 per plate fee shall be

distributed to the C & T scenic railroad commission “to defray the New Mexico share of the

expenses of the commission.“

BS/mt